A Cash issue
Cash is a nightmare. Living in a cash-based economy means constantly living in the present, with no tools to prepare for the future.
For financial service providers, managing cash is very risky, with no visibility on transactions. This makes the entire process very expensive. By digitizing transactions, the cost of bringing financial services to the bottom of the pyramid greatly diminishes.
TagPay and MicroFinance institutions: Going digital step by step
TagPay allows MFIs to take steps towards digitalization.
- First step: For every cash transaction, a TagPay confirmation is done digitally as a confirmation. This enables the MFI to have compelete visibility of what is happening on the ground, in real time.
- Second step: TagPay is used to put cash into an mWallet, with the loan management done in parallel, using the conventional MFI system.
- Third step: TagPay is installed as a complete solution, with micro-loans sent directly to the beneficiaries' phone and repayments performed with TagPay's strong authentication payment system. The MFI can manage all transactions from their headquarters in real time.
training of end-users, agents and small businesses
Along with the adoption of Mobile Financial Services comes the need to educate consumers, and train agents and small businesses in the use of these new digital tools. TagPay allows end-users to save money on their mWallet account. In order for this to happen, a change in end-user behavior is required. The end-user is used to receiving cash and spending it immediately, oftentimes because there is no safe way to save it. With the adoption of TagPay, there is a clear evolution in user-behavior. End-users no longer take out the entirety of their salary upon disbursment, but keep part of it on their phones. Education goes hand in hand with the implementation of mobile technology in order to ensure the benefits of mobile financial services and financial inclusion objectives.